If you have ever attended a stock market related seminar or trading event, then you have probably heard the term “Trader Talk”. For those unfamiliar with the term, Trader Talk is essentially a colloquial jargon used by traders to describe their inner thoughts and feelings on specific topics. It may sound foreign and even a little strange, but for the casual investor, becoming adept in the trader talk is worth the extra effort. The truth is, you cannot be too careful these days and especially when it comes to investing in stocks. If you do not want to lose your shirt, but rather make a steady profit for your hard earned money, then learn the ropes in the language of the markets.
One of the most important things to know when it comes to Trader Talk is that you should never talk down to anyone in the stock market. Remember that in the stock market, people are always trying to recruit you and take your money. It has been said many times that it is called the stock market; people are always looking for a deal. Therefore, before you even sit down at a computer screen, turn off the volume on your television and pretend as if you are having a conversation with a close friend. By the time you get all the way through your first sentence, you may feel like you are speaking to an old friend!
As far as talking about your stock picks, you should let it flow. Of course, there are certain things you should steer clear of, such as saying that a particular stock will go up ten percent in a matter of days. That will only happen if the market is experiencing abnormal fluctuations like the recent burst in the market. Therefore, talk about how difficult it can be to pick the right stock at the right time, but do not get overly technical or talk about any other factors affecting the market. In short, Trader Talk is very important if you want to become a successful stock investor.